Digital Nomad Visa Basics: Who Can Apply and What You Need to Know

Jun 27

Digital nomad visas are designed for professionals who can work remotely and earn income from sources outside their host country. The fundamental requirement is simple: your work and income must come from outside the destination country.

This includes remote employees working for foreign companies, freelancers and consultants serving international clients, entrepreneurs running online businesses, and self-employed professionals with location-independent practices. Whether you're in tech, marketing, consulting, or any field that can be done remotely, you likely qualify as long as your income comes from outside the host country.

Quick Reference: Digital Nomad Visa Essentials

💰 Typical Costs

Application fees: €50-€200 ($55-$220)
Income requirements: €2,500-€4,500/month ($2,700-$4,900)
Additional costs: Health insurance, accommodation proof, document authentication

⏱️ Timeline to Obtain

Processing time: 1-3 months
Planning ahead: Start 3-6 months before intended travel

📅 Duration

Initial visa: 6 months to 1 year
Extensions: Most renewable for 1-5 years total
Some programs: Non-renewable (must leave and reapply)

🔑 Key Eligibility Factors

Must work remotely for non-local employers/clients
Clean criminal background required
Health insurance mandatory
University degree or professional experience often required

⚠️ Important Limitations

No local employment permitted
May become tax resident after 183 days
Most don't lead directly to permanent residency
Family members may need separate applications

Who Qualifies for Digital Nomad Visas?

Core Eligibility Requirements

Income Requirements

Most programs require monthly income between €2,500-€4,500 ($2,700-$4,900), with proof of consistent earnings over 3-6 months. This income must come from sources outside the destination country—no local employment or local client work is permitted.

Work Arrangement

You must demonstrate that your work can be performed remotely and doesn't require physical presence in your home country. Many programs require employer confirmation letters or established client contracts.

Education and Experience

Many European programs require either a university degree or several years of professional experience in your field. This helps ensure applicants have valuable skills and stable career prospects.

Clean Background

All programs require criminal background checks from your country of residence. Any serious criminal history typically disqualifies applicants.

Health Insurance

Comprehensive health insurance coverage valid in the destination country is mandatory. This protects both you and the host country's healthcare system.

Understanding Key Limitations

Work Restrictions

Digital nomad visas come with strict limitations on local employment. You cannot:

Work for companies based in the host country
Provide services to local clients
Start a business that serves the local market
Accept any form of local employment

Violating these restrictions can result in visa cancellation and potential bans on future applications.

Tax Implications

If you stay in a country for more than 183 days in a year, you may become a tax resident, subjecting your worldwide income to local taxation. Some countries have tax treaties with the US to prevent double taxation - Second Pass has the resources to help you understand your tax obligations depending on where you want to go.

Residency Pathways

Most digital nomad visas are temporary permits that don't lead directly to permanent residency or citizenship. Portugal and Spain are notable exceptions, offering potential pathways to permanent status after several years.

Family Considerations

While many programs allow family members to join, they often require separate applications with additional income requirements—typically 20-50% more for spouses and 10-30% more per child.

Financial Planning Considerations

Beyond Minimum Requirements

While programs list minimum income thresholds, it's wise to earn significantly more to account for:

Currency fluctuations affecting your purchasing power
Higher costs in major cities vs. national averages
Emergency expenses and healthcare costs
Potential tax obligations in the destination country

Proof of Financial Stability

Many programs require bank statements showing savings equivalent to 6-12 months of living expenses, in addition to meeting income requirements. This demonstrates financial stability and ability to support yourself. Showing proof of multiple income streams can also strengthen your application, though it’s not a requirement.

Common Misconceptions

"Tourist Visas Are Sufficient"

Many digital nomads work illegally on tourist visas, but this carries serious risks including deportation, fines, and bans on future entries. Digital nomad visas provide legal protection and peace of mind.

"Any Remote Work Qualifies"

Simply working remotely isn't enough—your income must come from outside the host country. A US company's European subsidiary paying you while you're in Portugal, for example, might not qualify.

"Once Approved, You're Set"

Digital nomad visas require ongoing compliance with income requirements, tax obligations, and work restrictions. Violating terms can result in immediate cancellation.

Is a Digital Nomad Visa Right for You?

Consider these questions before applying:

Do you earn at least €3,000-€5,000 monthly from non-local sources?
Can you work effectively across different time zones?
Are you comfortable with temporary status rather than permanent residency?

If you answered yes to these questions, a digital nomad visa could be an excellent pathway to international living.

Next Steps

Understanding the basics is just the first step. In our next article, we'll walk through the detailed application process, from choosing your destination to submitting your documents and preparing for your move.

Ready to explore your digital nomad visa options? Second Pass can help you navigate the complexities of international mobility and ensure you're taking the right steps toward your global future.

Up next: "Step-by-Step: How to Apply for Your Digital Nomad Visa" - your complete guide to the application process.

Joseph Manganelli